Brazilian Cryptocurrency Law Likely to be Overhauled by Lula Government – Regulation Bitcoin Planet

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Brazil’s recently approved cryptocurrency law will likely be reviewed and revised by the newly inaugurated government of Luis Inacio “Lula” Da Silva. According to the statements of the former rapporteur of the law, Expedito Netto, the new government will probably revise the law to include some issues that have been left aside for its approval.

Brazil’s crypto law still not final, former reporting states

Brazil’s recently sanctioned cryptocurrency law will likely be reviewed by the country’s newly appointed congress, according to statements by its former rapporteur, MK Expeditto Netto. Netto explained that the changes proposed in the law are not yet final, as the project could be discussed again to examine some of the questions left aside for its approval.

For Netto, who was not chosen again as an MP in the general ballot held last year, there are still key issues that need to be discussed and included in the law. One of them was whether or not to force virtual asset service providers to segregate user funds from their own funds. The issue was eventually shelved as analysts explained that imposing this on companies in the sector could affect the products they could offer due to capital constraints.

However, there is international pressure for such constraints to be placed on cryptocurrency exchanges after what happened with FTX, one of the largest cryptocurrency exchanges in the world, when it filed for bankruptcy in November.

Other less controversial topics have also been left out, such as tax cuts for green mining operations.

Benefits of the law

The law makes changes that analysts say can help customers feel more secure while investing in cryptocurrency assets. The Central Bank of Brazil became the body responsible for monitoring and recording exchanges and custodial institutions in the country. In addition, the legislation gives the possibility to the Brazilian Securities Commission (CVM) to intervene in portfolio offers from these exchanges, limiting those considered illegal.

Another touted benefit of the law is that it aims to directly criminalize cryptocurrency scams, establishing penalties for the people behind them.

However, experts have expressed dissatisfaction with the state in which the law was approved, saying that while it is indeed a good start, there needs to be further regulation to expand which has already been established in law.

What do you think about the possibility of the government rehashing Brazil’s recently approved cryptocurrency law? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game, entering the cryptosphere when the price spike happened in December 2017. Having a background in computer engineering, living in Venezuela and impacted by the cryptocurrency boom at the social, it offers a different point of view. on the success of crypto and how it helps the unbanked and underserved.

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